Ownership of Real Property Flashcards
In California the term “real property” means the same thing as
(a) personal property.
(b) community property.
(c) real estate
(d) quasi-personal property
(c)real estate
Freehold estate includes
(a) estates for years.
(b) leasehold estates.
(c) life estates
(d) All of the above
(c)life estates
The distinctive characteristic of the freehold estate is that they endure for an interminable duration. Freehold estates include the fee simple absolute, fee simple subject to power of termination, and life estate.
Mark gives a life estate to Charlie. Mark’s interest is
(a) personal property
(b) reversionary.
(c) leasehold.
(d) remainder.
(b)reversionary.
Mark’s interest reverts back to him after the death of Charlie.
Which of the following is considered a “less than freehold estate”?
(a) Lease
(b) Life estate
(c) Fee simple estate
(d) Fee simple subject to power of termination
(a)Lease
A less than freehold estate is an estate in possession generally referred to as a leasehold. Such interests exist for a definite period of time or successive periods of time until termination by notice.
A person holding title to property in severalty would most likely have
(a) a life estate.
(b) an estate for years.
(c) ownership in common with others.
(d) sole ownership.
(d)sole ownership.
Tenants in common have equal right of
(a) time.
(b) title.
(c) interest.
(d) possession.
(d)possession.
Tenancy in common is a form of concurrent ownership where two or more persons hold separate legal title in the same property through the unity of possession. This means that each co-owner has an undivided fractional interest in the land and a right to use the whole property.
The four unities of joint tenancy are
(a) Time, Title, Interest, Possession
(b) Time, Interest, Possession, and Liability
(c) Title, Interest, Possession, and Ability
(d) Time, Possession, Liability, and Interest
(a)Time, Title, Interest, Possession
Community property is property owned by
(a) churches.
(b) spouses or registered domestic partners.
(c) the municipality.
(d) the community.
(b)spouses or registered domestic partners.
California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California is considered
(a) separate individual property
(b) quasi-community property
(c) jointly held personal property.
(d) distance owned real property.
(b)quasi-community property
New California residents should be aware of the concept of quasi-community property. Quasi-community property is any California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California; and any California real estate acquired in exchange for real or personal property located anywhere, when the California real estate would have been considered community property if it had been acquired by a California resident.
A form of business organization in which the co-owners are fully liable for the company’s debts is
(a) a general partnership.
(b) a limited partnership.
(c) a corporation.
(d) all of the above.
(a)a general partnership.
An “S” corporation
(a) is taxed as a partnership.
(b) avoids corporate taxation.
(c) passes tax liability through to shareholders.
(d) all of the above.
(d)all of the above.
With an “S” corporation, taxable income and net losses are passed through to the corporation’s shareholders. Double taxation at the corporate level is thus avoided.
The liability of a limited partner for business debts is limited to
(a) the same as the general partners.
(b) any amount agreed to in the partnership agreement.
(c) his/her contribution to the firm.
(d) the amount of the debts equally divided among all the partners.
(c)his/her contribution to the firm.
A form of ownership by which investors purchase certificates of ownership in a trust, which in turn invests the money in real property and then distributes any profits to the investors free of corporate tax is called a(n)
(a) Land Contract Sales Trust (LCST).
(b) Real Estate Investment Trust (REIT).
(c) Pooled Mortgage Investment Trust (PMIT).
(d) Flow-through Investment Trust (FIT).
(b)Real Estate Investment Trust (REIT).
In medieval England, the highest form of ownership was the:
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(a) freehold estate.
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(b) estate for years.
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(c) life estate.
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(d) leasehold estate.
(a) freehold estate.
The highest form of modern land ownership is known as:
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(a) a life estate.
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(b) a real estate trust.
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(c) a fee simple absolute.
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(d) an estate for years.
(c) a fee simple absolute.
